Investar Holding (ISTR) AI Stock Analysis

• Market Cap: $264.19M
• Dividend Yield: 1.57%
• Average Volume (3M): 37.74K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.90
• Revenue Growth: -0.34%
• EPS Growth: 27.03%
• Country: US
• Employees: 329
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.54
• Shares Outstanding: 9,810,435
• 10 Day Avg. Volume: 35,828
• 30 Day Avg. Volume: 37,740
• PEG Ratio: 0.49
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 1.38
• P/FCF Ratio: 13.98
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 1.76
• Enterprise Value/Gross Profit: 2.92
• Enterprise Value/Ebitda: 8.88
• 1Y Price Target: $29.00
• Price Target Upside: 7.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $29.00 ▲(7.69% Upside)

ISTR scores above average primarily due to strong financial momentum (revenue growth, improved profitability, and better leverage) and reasonable valuation. The score is tempered by mixed technical signals, balance-sheet equity reliance and operating cash flow concerns, and merger-related legal overhang despite the acquisition’s strategic benefits.

Positive Factors

Revenue Growth

Sustained 52.7% TTM revenue growth reflects durable expansion of core banking activities and successful loan/deposit growth. Such top-line momentum underpins net interest income, funds reinvestment, and supports longer-term earnings capacity beyond short-term cycles.

Improved Profitability

A 15.16% net margin indicates stronger profitability from operations and better expense or pricing discipline. Sustained margin improvement increases internally generated capital, improving the bank's ability to fund growth, absorb credit losses, and invest in strategic initiatives.

Strategic Acquisition Expands Footprint

Completion of Wichita Falls acquisition materially increases Texas scale, deposits and loan book, diversifying regional exposure and improving franchise economics. Board additions from the target support local relationships and potential revenue synergies over the medium term.

Negative Factors

Declining Gross Margin (Cost Pressure)

A falling gross margin signals structural cost or funding pressure that can compress net interest margins. If sustained, this undermines long-term profitability and requires either higher loan yields, tighter expense control, or strategic repricing to protect earnings.

Weak Operating Cash Flow Conversion

Low OCFO-to-net-income suggests reported earnings are not fully converting to cash, possibly from loan timing or working-capital dynamics. Persistent weak cash conversion limits dividend capacity, internal investments, and reduces resilience to funding stress over months.

Merger Legal Overhang

Pending disclosure lawsuits over the merger create a legal and transactional overhang. Litigation can increase costs, delay integration, distract management, and raise governance risk, potentially slowing realization of scale benefits and increasing uncertainty for stakeholders.

Investar Holding Business Overview & Revenue Model

Company Description

Investar Holding Corporation operates as the bank holding company for Investar Bank that provides a range of commercial banking products to individuals and small to medium-sized businesses in South Louisiana. The company offers various deposit products and services, such as savings, checking, money market, and individual retirement accounts, as well as various certificates of deposit; debit cards; and mobile banking services. It also provides commercial real estate loans; commercial and industrial loans, including working capital lines of credit and equipment loans; loans for the construction of commercial projects, and single family residential and multifamily properties; one-to-four family residential real estate lending, such as second mortgage loans; consumer loans, such as secured and unsecured installment and term loans, home equity loans and lines of credit, and auto loans, as well as loans for personal, family, and household purposes. In addition, the company offers cash management products, including remote deposit capture, virtual vault, electronic statements, positive pay, ACH origination and wire transfer, investment sweep accounts, and business Internet banking services. Further, it provides various other banking services, such as cashiers' checks, direct deposit of payroll and social security checks, night depository, bank-by-mail, automated teller machine, interactive teller machines, merchant card, and mobile wallet payment services. The company operates through a network of 24 full service branches. Investar Holding Corporation was founded in 2006 and is headquartered in Baton Rouge, Louisiana.

How the Company Makes Money

Investar Holding generates revenue primarily through interest income from loans and investments, as well as non-interest income from fees and services. The key revenue streams include net interest income, which comes from the interest earned on loans and other financial products, and non-interest income, which is derived from service fees, mortgage origination fees, and other banking services. Additionally, the company benefits from its strategic partnerships and relationships with local businesses and community organizations, enhancing its customer base and contributing to its earnings through increased lending and deposit activities.

Investar Holding Financial Statement Overview

Summary

Investar Holding demonstrates a stable financial performance with strong profitability margins and a balanced capital structure. However, the significant decline in revenue growth and low operating cash flow conversion are areas of concern. The company should focus on improving revenue growth and enhancing cash flow efficiency to strengthen its financial position further.

Income Statement

Investar Holding shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 39.2%, which is concerning. However, the company maintains a healthy gross profit margin of 58.7% and a net profit margin of 14.4%, indicating profitability. The EBIT and EBITDA margins are stable at 17.3% and 18.8%, respectively, showing operational efficiency despite revenue challenges.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.42 in the TTM period, indicating moderate leverage. The return on equity is 8.96%, which is reasonable for the industry. The equity ratio stands at 9.31%, suggesting a solid equity base relative to total assets. Overall, the company maintains a balanced approach to debt and equity financing.

Cash Flow

Cash flow analysis reveals a slight growth in free cash flow by 2.3% in the TTM period, which is a positive sign. However, the operating cash flow to net income ratio is low at 0.55%, indicating potential challenges in converting income into cash. The free cash flow to net income ratio is strong at 94.9%, suggesting efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	155.19M	156.52M	141.06M	123.18M	107.99M	105.93M
Gross Profit	93.43M	85.89M	84.38M	105.47M	73.38M	74.51M
EBITDA	30.73M	27.50M	24.21M	48.78M	14.90M	21.91M
Net Income	23.07M	20.25M	16.68M	35.71M	8.00M	13.89M
Balance Sheet
Total Assets	2.80B	2.72B	2.82B	2.75B	2.51B	2.32B
Cash, Cash Equivalents and Short-Term Investments	41.09M	34.12M	393.93M	445.23M	452.05M	303.78M
Total Debt	100.60M	101.02M	85.08M	439.74M	135.66M	175.00M
Total Liabilities	2.51B	2.48B	2.59B	2.54B	2.27B	2.08B
Stockholders Equity	295.30M	241.30M	226.77M	215.78M	242.60M	243.28M
Cash Flow
Free Cash Flow	13.26M	15.42M	25.18M	41.69M	30.16M	10.16M
Operating Cash Flow	14.30M	15.93M	26.25M	42.75M	33.48M	17.75M
Investing Cash Flow	-43.74M	90.06M	-73.49M	-350.99M	53.40M	-148.14M
Financing Cash Flow	-21.53M	-110.08M	38.99M	251.46M	-25.21M	121.07M

Investar Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ISTR, the sentiment is Positive. The current price of 26.93 is below the 20-day moving average (MA) of 27.05, above the 50-day MA of 25.74, and above the 200-day MA of 22.02, indicating a bullish trend. The MACD of 0.30 indicates Positive momentum. The RSI at 64.40 is Neutral, neither overbought nor oversold. The STOCH value of 58.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ISTR.

Investar Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OVLY	75 Outperform	$255.25M	10.69	12.29%	1.99%	5.50%	-5.19%
FVCB	75 Outperform	$254.49M	12.12	8.87%	0.87%	16.68%	322.32%
FUNC	71 Outperform	$247.08M	9.91	13.36%	2.38%	11.72%	55.87%
ISTR	68 Neutral	$264.19M	12.33	8.53%	1.57%	-0.34%	27.03%
NWFL	68 Neutral	$308.45M	43.10	3.56%	4.21%	-4.66%	-58.94%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Investar Holding Corporate Events

Investar Holding closes Wichita Falls Bancshares acquisition

On January 1, 2026, Investar Holding Corporation completed its acquisition of Wichita Falls Bancshares, Inc., parent of First National Bank in Wichita Falls, Texas, under a July 2025 merger agreement in a stock-and-cash transaction valued at about $112.9 million based on Investar’s December 31, 2025 share price. All Wichita Falls shares were converted into $7.2 million in cash and 3,955,334 Investar common shares, and Investar assumed $9.3 million of junior subordinated debentures supporting $9.0 million of trust preferred securities, as well as a $10.0 million note to TIB, N.A., which the company expects to repay in full in January 2026; the trust preferred securities are intended to qualify as Tier 1 capital at the holding company level. As part of the deal, effective January 1, 2026, former Wichita Falls and FNB directors David Flack and James Dunkerley joined the boards of Investar and Investar Bank as independent directors and were assigned to key board committees, reflecting a governance integration aimed at leveraging their relationships in the north Dallas and Wichita Falls markets. The transaction extends Investar’s community banking footprint into the north Dallas and Wichita Falls regions, adds a franchise with $1.2 billion in assets, $1.0 billion in net loans and $1.0 billion in deposits as of December 31, 2025, and advances its multi-state expansion strategy by significantly increasing its Texas presence and balance sheet scale for shareholders and other stakeholders.

The most recent analyst rating on (ISTR) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Investar Holding stock, see the ISTR Stock Forecast page.

Investar Holding Finalizes CFO Employment Agreement

On October 31, 2025, Investar Holding Corporation, through Investar Bank, finalized an employment agreement and a salary continuation agreement with John R. Campbell, who will continue as Executive Vice President and CFO. The agreements, effective the same day, include provisions for salary, incentives, and benefits. Additionally, a Split Dollar Life Insurance Agreement with Campbell was amended. Separately, on October 28, 2025, CEO John J. D’Angelo adopted a stock trading plan to exercise expiring stock options and sell a portion of the shares, effective January 26, 2026.

The most recent analyst rating on (ISTR) stock is a Buy with a $29.00 price target. To see the full list of analyst forecasts on Investar Holding stock, see the ISTR Stock Forecast page.

Investar Holding Gains Approval for Wichita Falls Merger

Investar Holding Corporation announced on October 30, 2025, that it received shareholder and regulatory approvals for its acquisition of Wichita Falls Bancshares, Inc., the parent company of First National Bank. The merger, initially agreed upon on July 1, 2025, will see Wichita Falls merge into Investar, enhancing its community banking services. The acquisition is expected to close by January 1, 2026, pending customary closing conditions.

The most recent analyst rating on (ISTR) stock is a Buy with a $29.00 price target. To see the full list of analyst forecasts on Investar Holding stock, see the ISTR Stock Forecast page.

Investar Holding Faces Lawsuits Over Merger Disclosures

On July 1, 2025, Investar Holding Corporation announced a merger agreement with Wichita Falls Bancshares, Inc., which will see WFB merge into Investar, making Investar the surviving corporation. However, following the announcement, lawsuits were filed by purported stockholders challenging the disclosures in the merger’s Proxy Statement/Prospectus, alleging negligent misrepresentation and concealment. To mitigate potential delays and costs, Investar decided to make supplemental disclosures voluntarily, despite believing the claims are without merit.

The most recent analyst rating on (ISTR) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Investar Holding stock, see the ISTR Stock Forecast page.